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Russian stock market daily evening report (February 25, 2013, Monday)

Contributed by Veles Capital

Stocks

Market today. Trade at the Russian exchange market went in positive tune today. MICEX index added 0.5% during the day. Favorable foreign background established late last week still makes the bulls active. Background was made positive by the rise of American and European indices, along with growth of the oil prices to the level of 115.4 USD. In case the macroeconomic background is positive the price might go up to 117.5 USD, which is a resistance level in short-term prospect.

Shares of Surgutneftegas (+0.87%) were among the growth leaders of the day, and that occurred due to the news on possible misbalance of MSCI Russia 10/40 Index, which might provide over limit inflow of assets on behalf of the exchange market in volume of 300 mn USD. Polyus Gold continues winning back the news on Prokhorov selling his share in the company (+1.67%). Notes of FNC UES were also among the leaders due to possible reduction of the state’s share down to 50% plus 1 share (+1.36%). The company that is a monopoly in power transfer in Russia was named a company of strategic importance relating the entire economy. So most likely in case the amendment to the regulation is adopted and a share of company being sold, there would be many investors intending to invest into given asset, which would increase its share price. More details are expected from the session of state Duma on March 12. The first bond placement by Norilsk Nickel for sum 35 bn RUR drove its shares 1.35% upwards. In future the company might build up the volume of dividends paid resulting from the increase of the assets borrowing volume.

Market tomorrow. Macroeconomic data will drive the market this week along with the news background. Results of the election in parliament of Italy will be announced this evening. In case supporters of Berlusconi get majority of seats in parliament, most likely the European indices react with down motion, and Russian market follows. Another factor to define the dynamics within a few coming days would be the statement of the chairman of FED Bernanke on Tuesday on the report on the monetary-credit policy to the Congress.

News briefly

TNK-BP extracted additionally over 2.3 mn tons of oil in 2012 due to introduction of new technology. Company

RAS net profit of Mosenergosbit in 2012 reduced 65% to 1.5 bn RUR. Company

VTB will open credit lines to GAZ Group for 6 bn RUR in order to finance investment programs of the company. Interfax